Your Right to Know

Neither side budged yesterday in the fight between Gov. John Kasich and state Auditor Dave Yost
over Yost’s power to examine the finances of JobsOhio, the governor’s privatized
economic-development agency.

In response to Yost’s subpoena of JobsOhio’s financial records on Wednesday, Kasich
characterized the tussle as a “little disagreement on how we should proceed.” But he also painted
it as an argument over auditing public funds versus private dollars and made it clear that he would
seek to prevent Yost from seeing JobsOhio’s private money.

Kasich said “anything that involves public money should be audited” by Yost, but he contended
that “it’s beyond his authority” to audit private funds in a corporation such as JobsOhio. Kasich
held open the possibility of legislation to define Yost’s authority, saying, “If we need
clarification on that, we’ll get it.”

But in a statement released by his office, Yost reasserted his authority to audit JobsOhio
because it uses taxpayer-provided state liquor profits to secure private funding.

“The governor and I have the same goal: to make sure JobsOhio’s money is working for the people
of Ohio — creating jobs and growing this economy for our families,” Yost said. “It’s important to
look at the total picture. The private bond proceeds trace directly back to the public
money."

Yost referred to JobsOhio’s complicated lease of the state’s liquor profits, which wasn’t
completed until Feb. 1. Before that, JobsOhio raised about $6.9 million in private donations and
received from $6 million to $9 million from the state.

JobsOhio is a nonprofit entity in which Kasich has no official role. Even so, Kasich and his
office have spoken on the record about Yost’s subpoena.

JobsOhio officials have not commented to
The Dispatch, and Kasich’s remarks seemed to reinforce reports that an amendment could
make its way into the state’s transportation budget to clarify what Yost can and cannot audit.

A private audit of JobsOhio, conducted by KPMG and released on Friday by the Kasich
administration, gives little insight into how JobsOhio’s $9 million in spending broke down between
public and private dollars in 2012.

JobsOhio has until March 19 to comply with the subpoena, but it was unclear what Yost would do
if his subpoena is ignored. He said he issued the subpoena after months of negotiating with
JobsOhio for its financial records failed to yield access to documents needed for an audit.

The tiff between Kasich and Yost, both Republicans, created an unlikely alliance — Democrats
siding with Yost. State Rep. John Carney, D-Columbus, demanded transparency and a “full accounting”
of all funds received and spent by JobsOhio.

Cuyahoga County Executive Ed FitzGerald, a likely 2014 gubernatorial challenger to Kasich,
issued a statement accusing Kasich of shrouding “JobsOhio in secrecy, denying the public the right
to examine its finances or challenge questionable expenses.

“Now the governor is on a dangerous collision course with the Republican state auditor,
seemingly directing staff to stonewall subpoenas and cover-up JobsOhio’s financial records.”

House Speaker William G. Batchelder, R-Medina, came to Kasich’s defense, say that Yost is “very
clearly” overstepping his authority.

“If there is clarification needed in law, maybe it’s because there isn’t any power for him to do
what he’s doing,” Batchelder said.